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Income Inequality in India 2004-2012: Role of Alternative Income sources

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  • Mehtabul Azam

    (Oklahoma State University)

Abstract

This paper examines the contribution of different income sources to overall income inequality in India, and how the relative importance of each income source has changed between 2004 and 2012. The paper finds that income inequality has increased marginally between 2004 and 2012. Most importantly, the marginal increase is observed in both urban and rural areas. In urban areas, regular salaried income contribute the most in total income and income inequality. In contrast, farm income is the major component in both rural income and rural income inequality followed by salaried income. Regular salaries has an inequality increasing effect while wages from agriculture and nonagricultural casual work has an inequality decreasing effect.

Suggested Citation

  • Mehtabul Azam, 2016. "Income Inequality in India 2004-2012: Role of Alternative Income sources," Economics Bulletin, AccessEcon, vol. 36(2), pages 1160-1169.
    • Handle: RePEc:ebl:ecbull:eb-16-00181
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    References listed on IDEAS

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    5. M Leibbrandt & C Woolard & I Woolard, 2000. "The contribution of income components to income inequality in the rural former homelands of South Africa: a decomposable Gini analysis," Journal of African Economies, Centre for the Study of African Economies, vol. 9(1), pages 79-99.
    6. Kung, James K S & Lee, Yiu-fai, 2001. "So What If There Is Income Inequality? The Distributive Consequence of Nonfarm Employment in Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 50(1), pages 19-46, October.
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    Cited by:

    1. Deven Bansod & Geetilaxmi Mohapatra & A. K. Giri, 2017. "Fiscal Policy, Economic Growth and Income Inequality: A Case of Indian Economy," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 20(63), pages 72-88, March.

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    More about this item

    Keywords

    Gini decomposition; income inequality; income sources;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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